Oil And Fuel Filter Market

Oil And Fuel Filter Market Outlook

The oil and fuel filter market is expected to surge ahead at a CAGR of 6.1% during the period 2022-2032. The market holds a valuation of US$ 4.23 billion as of 2022, and by 2032, the market is expected to reach a valuation of US$ 7.65 billion.

Market Dynamics

Market Drivers

An increase in pollution owing to the increasing construction activities is expected to surge the demand for oil and fuel filter during the forecast period. Fuel filters are intended to eradicate dust and dirt particles from the fuel, which generally enter in the form of pollutants.

Furthermore, a surging automobile sector represents massive opportunity for the market of oil and fuel filter. These filters have a limited lifetime which consequently leads to huge demand. This coupled with the strict emission norms is expected to have a positive impact on the oil and fuel filter adoption trends.

Moreover, there has been an increased aftermarket spend on the vehicles, which is expected to further surge the market growth. Furthermore, technological advancements in the automobile sector have led to the development of low Sulphur diesel powered vehicles. This is expected to surge the sales of oil and fuel filter.

Moreover, an increased emphasis on vehicle safety coupled with actions taken by automobile manufacturers to improve engine performance is expected to surge the market share. Furthermore, the automobile manufacturers are also investing in R&D to introduce clean fuel levels in oil filters. This is expected to have a positive impact on the oil and fuel filter market future trends.

Market Restraints

One of the key factors which may challenge the market growth is the growing demand for long drain intervals. This may somewhat impact the quality of the oil and fuel filter, as a result of which the efficiency of these filters might drastically reduce.

Furthermore, an increase in the adoption of electric vehicles is expected to have a massive impact on the market of oil and fuel filters. As the electric vehicles do not make use of fuels, the demand for oil and fuel filter might gradually reduce, which would reduce their market share.

Nikhil Kaitwade

Principal Consultant

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Segmentation Analysis

By vehicle type

The passenger car segment holds the maximum market share, and might retain the top position during the forecast period. Increase in the disposable income, coupled with rapid urbanization has led to a surge in the adoption of passenger cars. Based on the statistics released by Statista, more than 57 million passenger cars were produced worldwide in 2021, which is more than other segments. The analysts are of the view that the brief hiccups that were caused because of the pandemic would be more than compensated during the coming times.

By region

Based on the regional analysis, the North American region is expected to be the largest market during the forecast period. This is driven by the rising demand for eco-friendly vehicles, coupled with stringent government policies regarding the application of eco-friendly vehicles. Europe is expected to closely follow North America because of the presence of key automobile manufacturers.

Asia-Pacific is expected to be the fastest growing market, and might even overtake Europe to become the second largest market by the end of forecast period. Rising disposable income, along with improvement in the automobile infrastructure is expected to surge the market share in the Asia-Pacific region.

High fitment rate, particularly in SUVs and luxury vehicles, strengthens the demand for oil and fuel filter in the aftermarket. High replacement rate of filters is also observed in tractors, owing to efficient filtration requirement.

Historic Market Outlook for Oil and Fuel Filter

The market analysis for oil and fuel filters from 2018 to 2022 exhibited a historical growth rate of 0.7% CAGR, Factors such as increasing purchasing power and improved consumer sentiment are driving the demand for vehicles, which in turn, increases the market's expansion from 2018 to 2022.

However, according to the most recent FMI analysis, the oil and fuel filter market is expected to grow at a rate of 4.5% between 2023 and 2033. Today, end users are continuously looking for cost-effective solutions for their applications. To meet this need, manufacturers are striving to create high-quality, low-cost filters. This factor also influences product innovation, which increases demand for and sales of oil and fuel filters. Additionally, end users prefer filters with a longer lifecycle, which reduces overall maintenance costs while increasing business margins.

Growing environmental, pollution, and global warming concerns have compelled the government to impose new restrictions and emission standards for the automotive industry. These emission rules and standards are one of the key drivers of the automobile oil and fuel filter market's growth.

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What are the Various Factors Driving the Oil and Fuel Filter Market?

The oil and fuel filter market is directly correlated to automotive sales. Despite recent difficult economic conditions, the global automotive industry has grown satisfactorily on average. Over the forecast period, automotive output is expected to grow at a moderate CAGR of 3–3.5%. Increasing automobile production and sales are expected to be important drivers driving the growth of the worldwide oil and fuel filter market during the forecast period. Also, factors such as rising purchasing power, growing infrastructure, and improved consumer attitudes are all driving up demand for vehicles, which in turn drives up demand for oil and fuel filters. A vast number of OEMs are establishing production facilities around the world. Because of their growing populations and increased demand for personal vehicles, India and China are important markets for automakers. This is anticipated to boost the demand for the oil and fuel filter markets.

Automotive transmission oil filters are a critical component in a vehicle since they act as a first line of defence in keeping pollutants out of the fluid. Transmission oil filters are used not just to improve transmission system performance, but also to reduce wear and tear and improve fuel economy. Many car owners replace transmission oil filters to improve vehicle performance by making the engine run smoother and more effectively. Transmission oil filters are popular among automobile owners who want to enjoy a comfortable driving experience while saving money on fuel. As a result, the replacement of transmission oil filters has recently emerged as a popular practise among vehicle owners. This, in turn, is expected to boost the global oil and fuel filter market's growth throughout the forecast period.

What is the impact on oil and fuel filters market due to use of Nonwoven Composites for Filter Manufacturing?

The replacement frequency of any filter is strongly influenced by the filter media. Most filter media used in oil and fuel filtration are made by the wet lay-up technique using cellulosic fibers. Manufacturers of filter media have created new combinations of fibers and processing to improve the efficiency of automotive oil and fuel filtration.

Government regulations, as well as the need for longer filter change intervals, have led to the use of non-woven composites or non-woven filter media in automotive oil and fuel filters.

Nonwovens have properties such as lightness, advanced insulation, flame retardancy, abrasion resistance, and resistance to extreme temperatures. These materials help to make cars more appealing, safer, and longer-lasting, as well as more cost-effective and sustainable. Gear oil filter manufacturers use non-woven composites that provide excellent strength, abrasion resistance, fire resistance, sound insulation, and easy formability.

Which Region hold the prominent share in oil and fuel filters Market?

North America is predicted to emerge as the leading section of the worldwide oil and fuel filter market, owing to rising demand for environmentally friendly automobiles in the region, as well as strong government rules requiring the use of environmentally friendly components in vehicles. Over the next few years, Europe might account for a sizable portion of the worldwide oil and fuel filter industry. The presence of multiple important industry competitors, as well as increasing demand for automobiles, has contributed to the growth of the European oil and fuel filter market.

In East Asia, regional manufacturers are investing in innovative technologies to increase car production, supporting the adoption of filters in the region. Besides, owing to the rapid expansion and development of the automobile manufacturing industry in China and Japan, the demand for automotive oil and fuel filters is expected to increase during the forecast period.

Additionally, the Middle East and Africa, as well as Latin America, are predicted to increase significantly during the forecast period.

Market Competition

Key players operating in the oil and fuel filters market are The Mann+Hummel Group, Ahlstrom Corporation, Rank Group Limited (UCI-FRAM), Cummins Inc., Sogefi SpA, Donaldson Company, Inc., MAHLE GmbH, Clarcor Inc., Denso Corporation, Hengst Se & Co. Kg, AC Delco Inc., GUD Holdings Limited and others.

Key manufacturers are focusing on expanding their regional market and are involved in establishing their direct presence in local markets through mergers and acquisitions with local suppliers, along with an increasing focus on expanding the dealer network around potential high-demand locations. Manufacturers want to develop products that are model specific. Automotive OEMs provide model-specific filters with different types of oil and fuel filter media according to end-use requirements.

Scope of the Report

Key Segments Profiled in the Oil and Fuel Filter Market

By Vehicle Type, Oil and Fuel Filter Market is segmented as:

• Passenger Car
• LCV (Light Commercial Vehicle)
• HCV (Heavy Commercial Vehicle)

By Sales Channel, Oil and Fuel Filter Market is segmented as:

• OEM (Original Equipment Manufacturer)
• Aftermarket

By Filter Type, Oil and Fuel Filter Market is segmented as:

• Oil filter
• Fuel filter

By Filter Media, Oil and Fuel Filter Market is segmented as:

• Cellulose
• Synthetic-Laminated
• Pure Glass

By Region, Oil and Fuel Filter Market is segmented as:

• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa